FedEx Pledges Customer Refunds for Unlawful Tariffs Following Supreme Court Decision

Supreme Court Invalidates Trump-Era Tariffs

In a significant development, the U.S. Supreme Court ruled on February 20, 2026, that tariffs imposed by former President Donald Trump under the International Emergency Economic Powers Act (IEEPA) were unlawful. The 6-3 decision found that the IEEPA does not grant the president unilateral authority to levy tariffs, asserting that such taxation power is reserved exclusively for Congress under Article I of the U.S. Constitution.

FedEx Files Lawsuit and Commits to Customer Refunds

Following the Supreme Court's ruling, FedEx initiated legal action against the U.S. government. On February 23, 2026, the logistics giant filed a lawsuit in the U.S. Court of International Trade, seeking a 'full refund' for all duties paid under the IEEPA. FedEx typically acts as the 'importer of record,' paying customs duties to the government and subsequently passing these charges on to its customers.

In a public statement, FedEx affirmed its commitment to its customers, declaring, 'If refunds are issued to FedEx, we will issue refunds to the shippers and consumers who originally bore those charges.' However, the company also noted that the precise process and timeline for these refunds remain uncertain, as they will depend on future guidance from both the government and the court, with no established refund process currently in place.

Wider Implications and Customer Actions

FedEx is not alone in its pursuit of tariff refunds. It is among more than 1,000 companies, including major corporations such as Costco, Revlon, Bausch + Lomb, Dyson, L'Oreal, and Hasbro, that have either filed or are expected to file similar lawsuits. Estimates suggest that importers have paid approximately $175 billion in IEEPA tariffs since their implementation, with the government collecting over $133 billion in tariffs as of December.

Adding another layer to the situation, customers have also begun filing class-action lawsuits directly against shipping companies like FedEx. One such lawsuit was filed on February 27, 2026, in Miami federal court by Matthew Reiser, who claims he was charged $36 in duties and fees for tennis shoes imported from Germany. These customer lawsuits argue that FedEx's public commitment to refunds is not legally enforceable.

The Supreme Court's ruling did not specify a mechanism for refunds, and the U.S. Treasury Secretary has indicated that the litigation process for these refunds could extend for years. In response to the situation, a group of Senate Democrats introduced the Tariff Refund Act of 2026 on February 23, 2026. This proposed legislation aims to mandate the government to fully refund all IEEPA tariffs, plus interest, within 180 days, with a prioritization for small businesses.

Uncertainty Surrounds Refund Process

While FedEx has clearly stated its intention to pass on any recovered tariff payments to its customers, the practicalities and timeline for these refunds remain subject to ongoing legal proceedings and future governmental guidance. The complex interplay of corporate lawsuits, customer class actions, and potential legislative efforts means that the ultimate resolution and the exact method of reimbursement are yet to be determined.